Oncothyreon Reports Second Quarter 2013 Financial Results

          Oncothyreon Reports Second Quarter 2013 Financial Results

PR Newswire

SEATTLE, WA, Aug. 6, 2013

Company to Hold Conference Call at 4:30 p.m. EDT Today

SEATTLE, WA, Aug. 6, 2013 /PRNewswire/ - Oncothyreon Inc. (NASDAQ: ONTY) today
reported financial results for the second quarter ending June 30, 2013.

Loss from operations increased in the second quarter of 2013 to $18.0  million 
from $8.1 million in the second quarter of 2012, and to $26.0 million for  the 
six months ended June 30, 2013 compared with $13.8 million for the  comparable 
period in 2012. The  increase in loss  from operations for  the three and  six 
months ended June 30, 2013 compared to prior year periods was primarily due to
an upfront  payment  of $10.0  million  to  Array BioPharma  Inc.  (Array)  in 
connection with  the initiation  of  Oncothyreon's collaboration  with  Array, 
which was announced on May  30, 2013. In addition,  the increase in loss  from 
operations for the  six months  ended June  30, 2013  was also  the result  of 
increased  development  activity  for  Oncothyreon's  product  candidates  and 
increased general and administrative expenses.

Net loss for the three months ended June 30, 2013 was $16.4 million, or  $0.28 
loss per basic and diluted share, compared  with net loss of $8.7 million,  or 
$0.15 loss per  basic and diluted  share, for the  comparable period in  2012. 
Oncothyreon reported a net loss of $24.7  million or $0.43 loss per basic  and 
diluted share for  the six months  ended June  30, 2013, compared  with a  net 
income of $1.0 million or $0.02 earnings per basic and $0.28 loss per  diluted 
share for the  comparable period in  2012. The  increase in net  loss for  the 
three months  ended  June 30,  2013  compared to  the  prior year  period  was 
primarily attributable  to  an upfront  payment  of $10.0  million  to  Array, 
partially offset by  a $1.6  million of  non-cash income  as a  result of  the 
change in fair value of warrant liability for the three months ended June  30, 
2013 compared to a $0.3 million of non-cash expense as a result of the  change 
in fair value of warrant liability for  the three months ended June 30,  2012. 
The increase in net loss  for the six months ended  June 30, 2013 compared  to 
the prior year  period net income  was primarily attributable  to the  upfront 
payment of $10.0 million to Array, and a $1.3 million of non-cash income as  a 
result of the change  in fair value  of warrant liability  for the six  months 
ended June 30, 2013 compared to a $15.3 million of non-cash income as a result
of the change in fair value of warrant liability for the six months ended June
30, 2012. In addition, the increase in net loss for the six months ended  June 
30,  2013  was  also  the   result  of  increased  development  activity   for 
Oncothyreon's product  candidates  and increased  general  and  administrative 
expenses.

As of June 30, 2013, Oncothyreon's cash, cash equivalents and investments were
$69.6 million, compared to $83.8 million  at December 31, 2012, a decrease  of 
$14.2 million, or  16.9 percent.  The decrease was  primarily attributable  to 
$23.9 million cash  used in operations  during the six  months ended June  30, 
2013. This decrease was offset in  part by net proceeds of approximately  $9.9 
million from the  closing of a  June registered direct  offering of  5,000,000 
shares of Oncothyreon common stock  and warrants to purchase 5,000,000  shares 
of common stock.

Financial Guidance

Oncothyreon believes the following financial guidance to be correct as of  the 
date provided. Oncothyreon  is providing  this guidance as  a convenience  to 
investors and assumes no obligation to update it.

Exclusive of the  one-time, upfront  payment to  Array, Oncothyreon  currently 
expects expenses in 2013 to be similar to 2012 and cash used in operations  in 
2013 to  be  approximately $29  to  $31  million. As  a  result,  Oncothyreon 
estimates that its  existing cash,  cash equivalents and  investments will  be 
sufficient to fund operations for at least the next 12 months.

Conference Call and Webcast

Oncothyreon will conduct a conference call today, August 6, 2013 at 4:30  p.m. 
Eastern time  (1:30 p.m.  Pacific time)  to discuss  its second  quarter  2013 
financial results  and  provide  a  review of  its  pipeline  of  products  in 
development. To  participate in  the  call by  telephone, please  dial  (877) 
280-7291 (United States) or (707) 287-9361 (International). In addition,  the 
call will be  webcast live and  can be accessed  on the "Events"  page of  the 
"News & Events" section of  Oncothyreon's website at www.oncothyreon.com.  An 
archive of the webcast  will be available after  completion of the  discussion 
and will be posted on Oncothyreon's website.

About Oncothyreon

Oncothyreon is  a biotechnology  company specializing  in the  development  of 
innovative therapeutic  products for  the treatment  of cancer.  Oncothyreon's 
goal is to  develop and  commercialize novel synthetic  vaccines and  targeted 
small molecules that have the potential  to improve the lives and outcomes  of 
cancer patients. For more information, visit www.oncothyreon.com.

Forward-Looking Statements

In order  to provide  Oncothyreon's  investors with  an understanding  of  its 
current results and  future prospects, this  release contains statements  that 
are forward-looking. Any statements contained  in this press release that  are 
not statements  of  historical  fact  may  be  deemed  to  be  forward-looking 
statements. Words  such  as  "believes,"  "anticipates,"  "plans,"  "expects," 
"will,"  "intends,"  "potential,"  "possible"  and  similar  expressions   are 
intended  to  identify   forward-looking  statements.  These   forward-looking 
statements  include  Oncothyreon's  expectations  regarding  future  expenses, 
clinical development activities and the use and adequacy of cash resources.

Forward-looking  statements  involve  risks   and  uncertainties  related   to 
Oncothyreon's business and the general economic environment, many of which are
beyond its control. These risks,  uncertainties and other factors could  cause 
Oncothyreon's actual  results to  differ materially  from those  projected  in 
forward-looking statements, including the risks associated with the costs  and 
expenses of developing its product  candidates, the adequacy of financing  and 
cash,  cash  equivalents  and  investments,  changes  in  general   accounting 
policies, general economic factors, achievement of the results it  anticipates 
from its  clinical  trials  of  its product  candidates  and  its  ability  to 
adequately obtain  and  protect  its intellectual  property  rights.  Although 
Oncothyreon believes that the forward-looking statements contained herein  are 
reasonable, it can give  no assurance that its  expectations are correct.  All 
forward-looking statements are expressly qualified  in their entirety by  this 
cautionary statement. For  a detailed description  of Oncothyreon's risks  and 
uncertainties, you  are encouraged  to  review the  documents filed  with  the 
securities regulators in the  United States on EDGAR  and in Canada on  SEDAR. 
Oncothyreon  does  not  undertake  any  obligation  to  publicly  update   its 
forward-looking statements based  on events  or circumstances  after the  date 
hereof.

Additional Information

Additional information relating to Oncothyreon can be found on EDGAR at
www.sec.gov and on SEDAR at www.sedar.com.

                                                     ONCOTHYREON INC.
                                      Condensed Consolidated Statements of Operations
                                     (In thousands except share and per share amounts)
                                                        (Unaudited)

                                  Three months ended                                   Six months ended
                                         June30,                                              June30,
                                     2013                     2012                   2013                     2012
                                                                                                              
Expenses                                                                                                       
 Research and     $           16,058  $                $6,279  $       $21,857  $               $10,565
  development
 General and            1,989        1,824      4,181        3,279
  administrative
 Total operating       18,047        8,103     26,038       13,844
  expenses
 Loss from           (18,047)      (8,103)   (26,038)     (13,844)
  operations
Other income                                                                                                   
(expense)
 Investment and            24        (227)         52        (199)
  other income
  (expense), net
 Interest                   —        (146)          —        (309)
  expense
 Change in fair         1,625        (259)      1,300       15,308
  value of
  warrant
  liability
 Total other            1,649        (632)      1,352       14,800
  income
  (expense), net
Net income         $         (16,398)  $          (8,735)  $       (24,686)  $              956
(loss)
Net income (loss)  $          (0.28)  $           (0.15)  $     (0.43)  $             0.02
per share -
basic
Net income (loss)  $            (0.28)  $             (0.15)  $      (0.43)  $                (0.28)
per share -
diluted
Shares used to      58,710,574   56,844,099     57,967,534   50,228,604
compute basic net
income (loss) per
share
Shares used to      58,710,574   56,844,099     57,967,534   51,723,266
compute diluted
net income (loss)
per share


                               ONCOTHYREON INC.
                       Consolidated Balance Sheet Data
                     (In thousands except share amounts)
                                 (Unaudited)

                                                       As of
                                        June 30, 2013   December 31, 2012
Cash, cash equivalents and investments  $        69,569  $            83,756
Total assets                            $        74,877  $            89,435
Long term liabilities                   $        1,947  $             4,041
Stockholders' equity                    $        68,502  $           82,323
Common shares outstanding                   62,269,147          57,216,237









SOURCE Oncothyreon Inc.

Contact:

Investor and Media Relations Contact:

Julie Rathbun
Rathbun Communications
206-769-9219
ir@oncothyreon.com

ONCOTHYREON INC.
2601 Fourth Avenue, Suite 500, Seattle, WA 98121
Tel: (206) 801-2100 Fax: (206) 801-2101
http://www.oncothyreon.com